Ok, apparently the Arduino Nano (cheapo knocked off ones from eBay both China and USA sellers) from eBay must be used with OLD bootloader.
The solution was to choose "Tools -> Processor -> Atmega328P (Old Bootloader)" option, and should flash the program nicely.
ketch uses 924 bytes (3%) of program storage space. Maximum is 30720 bytes.
Global variables use 9 bytes (0%) of dynamic memory, leaving 2039 bytes for local variables. Maximum is 2048 bytes.
C:\Users\ale2\dev\Arduino\hardware\tools\avr/bin/avrdude -CC:\Users\ale2\dev\Arduino\hardware\tools\avr/etc/avrdude.conf -v -patmega328p -carduino -PCOM3 -b57600 -D -Uflash:w:C:\Users\ale2\AppData\Local\Temp\arduino_build_122058/Blink.ino.hex:i
avrdude: Version 6.3-20190619
Copyright (c) 2000-2005 Brian Dean, http://www.bdmicro.com/
Copyright (c) 2007-2014 Joerg Wunsch
System wide configuration file is "C:\Users\ale2\dev\Arduino\hardware\tools\avr/etc/avrdude.conf"
Using Port : COM3
Using Programmer : arduino
Overriding Baud Rate : 57600
AVR Part : ATmega328P
Chip Erase delay : 9000 us
PAGEL : PD7
BS2 : PC2
RESET disposition : dedicated
RETRY pulse : SCK
serial program mode : yes
parallel program mode : yes
Timeout : 200
StabDelay : 100
CmdexeDelay : 25
SyncLoops : 32
ByteDelay : 0
PollIndex : 3
PollValue : 0x53
Memory Detail :
Block Poll Page Polled
Memory Type Mode Delay Size Indx Paged Size Size #Pages MinW MaxW ReadBack
eeprom 65 20 4 0 no 1024 4 0 3600 3600 0xff 0xff
flash 65 6 128 0 yes 32768 128 256 4500 4500 0xff 0xff
lfuse 0 0 0 0 no 1 0 0 4500 4500 0x00 0x00
hfuse 0 0 0 0 no 1 0 0 4500 4500 0x00 0x00
efuse 0 0 0 0 no 1 0 0 4500 4500 0x00 0x00
lock 0 0 0 0 no 1 0 0 4500 4500 0x00 0x00
calibration 0 0 0 0 no 1 0 0 0 0 0x00 0x00
signature 0 0 0 0 no 3 0 0 0 0 0x00 0x00
Programmer Type : Arduino
Description : Arduino
Hardware Version: 2
Firmware Version: 1.16
Vtarget : 0.0 V
Varef : 0.0 V
Oscillator : Off
SCK period : 0.1 us
avrdude: AVR device initialized and ready to accept instructions
Reading | ################################################## | 100% 0.00s
avrdude: Device signature = 0x1e950f (probably m328p)
avrdude: reading input file "C:\Users\ale2\AppData\Local\Temp\arduino_build_122058/Blink.ino.hex"
avrdude: writing flash (924 bytes):
Writing | ################################################## | 100% 0.30s
avrdude: 924 bytes of flash written
avrdude: verifying flash memory against C:\Users\ale2\AppData\Local\Temp\arduino_build_122058/Blink.ino.hex:
avrdude: load data flash data from input file C:\Users\ale2\AppData\Local\Temp\arduino_build_122058/Blink.ino.hex:
avrdude: input file C:\Users\ale2\AppData\Local\Temp\arduino_build_122058/Blink.ino.hex contains 924 bytes
avrdude: reading on-chip flash data:
Reading | ################################################## | 100% 0.22s
avrdude: verifying ...
avrdude: 924 bytes of flash verified
avrdude done. Thank you.